CMS RAC program suspension ends

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The Centers for Medicare & Medicaid Services (CMS) has reported that it is resuming implementation of the Medicare recovery audit contractor (RAC) program, which was temporarily suspended for four months after a protest was lodged over the contract award process.

The two companies that lodged the complaint—PRG-Schultz International and Viant Health Payment Solutions—will serve as subcontractors for the permanent RAC program as part of a settlement agreement.

Providers also questioned the fairness of auditors' conclusions. PRG-Schultz, meanwhile, has come under additional scrutiny, in part because it's co-owned by U.S. Senator Dianne Feinstein, D-Calif. PRG-Schultz reported Monday that it had withdrawn its Government Accountability Office protest of the Medicare RAC contract awards and has entered into subcontracts with three of the four Medicare RAC contract awardees.

PRG-Schultz will serve as a subcontractor to HealthDataInsights, and Viant Health Payment Solutions will subcontract to Connolly Consulting.

The roll-out of the permanent program had been on hold as a result of the protests; however, CMS and the four winning bidders may now proceed in deploying Medicare's RAC program.